Drawdown: The Real, Felt Cost of Risk
The number that determines whether you can actually stick with a strategy isn't the average return - it's the worst dip along the way.
Drawdown measures how far a position (or a whole portfolio) has fallen from its peak value - not the final result, but the roughest stretch you had to sit through to get there.
Two strategies can have the identical average return over a year while having wildly different maximum drawdowns - and the one with the smaller drawdown is almost always the one a real person can actually stick with under pressure.
BullYeah's own Official Tracked Setups track this exact thing (Maximum Adverse Excursion) for every setup, win or lose - the worst dip a real position experienced while it was active, not just its final outcome.
On the Top Stocks Track Record page, active/closed picks show their worst-case excursion alongside the final return - the drawdown story, not just the headline number.
Sign in to take this lesson's quiz and track your progress.